Bitcoin Sports Bettors in Russia Lose Hope of Legislation

The past year has been a challenging time for Bitcoin users in Russia, as the official government kept expressing radically different ideas about the future of the cryptocurrency in the country. Where several months ago, Bitcoin sportsbetting in Russia seemed like it might get some relief with the newly proposed policies, nowadays it seems more likely that the world’s leading cryptocurrency might not ever get legalized by the indecisive government.

Russia Vows to “Never” Legalize Bitcoin

The past three months have been a trying period for the crypto-community in Russia which began when the Deputy Minister of Finance, Alexey Moiseev, first announced that Bitcoin will be restricted only to “qualified investors” in August.  Mirroring his words was President Putin’s public address in Sochi in October, where he spoke about the risk of cryptocurrencies and their possible abuse for money laundering and criminal activities.

One of the more recent public warnings issued about Bitcoin came from Nikolai Nikiforov, Minister of Communications and Mass Media in the Russian Federation, who informed the public in a November 20th press address that Russia is very unlikely to ever legalize Bitcoin. In his address, according to local media, Nikiforov said that Russia’s legal system “will never consider bitcoin as a legal entity” in the country’s jurisdiction, since Bitcoin was a “foreign” blockchain project.

Nikiforov’s warning came only months after the Russian public was informed in April that the Federation is mulling over a new Bitcoin legislation that would legalize and define Bitcoin, in an effort to give more strength to the local economy and fight money laundering. At the time, this was seen as a radical but positive change of heart from the government’s declaration of an unofficial war on Bitcoin, which was revealed a year before. There was even an official confirmation from the Central Bank in April that the legislation would be ready by the summer. But now, it seems such that a future legalization is very unlikely.

Russian Central Bank Warns About Bitcon “Bubble”

In line with the government’s stance on Bitcoin, Russia’s Central Bank issued a warning two days ago to all cryptocurrency holders about the “high risks” of using digital currencies like Bitcoin, according to local media outlets. The warning was given last Tuesday through the Financial Stability Report of the Central Bank, where concerns about the possible losses of dealing with cryptocurrencies were voiced.

The main risk outlined by the Central Bank is that users of cryptocurrencies can suffer “substantial losses” due to a “bubble” on the market. It is for this purpose, but also the potential use of cryptocurrencies in terrorism funding and money laundering, that the Bank feels all national and supranational regulatory bodies should develop a coordinated approach to cryptocurrency regulation, in order to minimize risks and limit the potential of high-risk transactions and investments.

Subduing “foreign” cryptocurrencies is possibly part of a bigger plan to launch Russia’s own cryptocurrency – the CryptoRuble, which is reportedly being considered by the Russian government now. If the plan succeeds, the CryptoRuble will embrace the potential of blockchain technology but in a more secure and centralized environment that will not carry the “risks” other digital currency markets do.  Although this is far from what local cryptocurrency fans have probably imagined, it could see Russia emerge as the leader in online, blockchain-based economies.